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Pensions

Figuring 2014 Pension (CRSP) and Comprehensive Protection Plan (CPP) 

CLERGY RETIREMENT SECURITY PROGRAM (CRSP)


The Clergy Retirement Security Program (CRSP) is the pension program for all eligible United Methodist Clergy. CRSP offers a two component benefit design:

 

a) Defined Benefit – Promises a specific dollar amount at retirement regardless of market conditions or investment performance. The amount is based on a formula that specifies a monthly retirement benefit to  

eligible clergy for the remainder of their lives.


                b) Defined Contribution – Promises a defined amount that is deposited into an active clergyperson’s account with monthly deposits. This benefit distributed at retirement is the accumulated amount plus earnings  

(losses) in the individual’s account.

 

The cost of participation in CRSP will continue to be direct billed to the local church for the two components (Defined Benefit and Defined Contribution).

a) Defined Benefit:   Full time clergy - $6,100
                                                     ¾ time clergy - $4,575
                                                     ½ time clergy - $3,050
                                                     ¼ time clergy - Ineligible effective 01/01/2014 *
                                                                          plus
                 b) Defined Contribution:  3% of participant’s Plan Compensation


Plan Compensation is calculated in the following manner:
• Pastor Lives in a Parsonage – Take the Pastor’s Salary and multiply it by 1.25 (adding 25%). This total figure represents plan compensation.


• Pastor Receives Housing Allowance – Take the Pastor’s Salary and add the Housing Allowance. Note: This is NOT part of Housing/Furnishing Exclusion. This total figure represents plan compensation.


* The Conference Board of Pensions strongly recommends that churches with a clergy appointed ¼ time sponsor the United Methodist Personal Investment Plan (UMPIP) with a 12% contribution level for their clergy. Please contact the General Board of Pension and Health Benefits at 800-851-2201 to become a UMPIP plan sponsor.

 

                 COMPREHENSIVE PROTECTION PLAN (CPP)

CPP is direct billed to the local church at a rate of 3.1% of Plan Compensation. If your pastor does not meet the eligibility requirements, you will not be billed for CPP.
ELIGIBILITY REQUIREMENTS: Full Members, Provisional Members, Full Time Local Pastors who meet salary requirements.
BENEFITS: Death and Disability
               

Important – Following are salary eligibility requirements to determine if a pastor qualifies for CPP:
• Pastor Lives in a Parsonage – The minimum total of Pastor’s Salary on the PSCF should be $31,290.
• Pastor Receives Housing Allowance – The minimum total of Pastor’s Salary plus Housing Allowance on the PSCF should be $39,112.

* The pastor's Personal Investment Plan (UMPIP) is a separate issue and is withheld from his/her salary.  You will receive a separate billing for UMPIP from the General Board of Pension and Health Benefits.

 

We encourage you to contact us with any questions or concerns you might have. We are more than happy to help! 

 

 

Below are links to important information regarding pension for clergy and lay employees. 

General Board of Pension and Health Benefits (GBOPHB)

Retirement Plans for Clergy
Clergy Retirement Security Program (CRSP)
Clergy Retirement Security Program (CRSP) is a retirement program providing lifetime income and account flexibility designed for those who serve God as clergy of The United Methodist Church. The plan is designed to provide participants with one piece of their overall retirement portfolio.


United Methodist Personal Investment Plan (UMPIP)

Clergy and Social Security
IRS - Exemption From Self Employment(SE) Tax


Retirement Plan for Lay Employees
United Methodist Personal Investment Plan (UMPIP)
 

If you need additional information, please contact:

Shawn-Marie Riley, Conference Benefits Administrator

Phone:  (800) 460-8622 or (817) 877-5222

Fax:  (817) 338-4541 

E-mail:  Shawn-Marie@ctcumc.org